CCJ – what is it and how to avoid getting one

WHAT IS A CCJ

CCJ is an acronym for ‘County Court Judgment’. A CCJ against a person/company typically occurs in money claims from one person/company (Claimant) to another person/company (Defendant).  If a CCJ has been entered against a Defendant, it usually means 1 of the following occurred:

1. The Defendant did not pay the debt owed
2. The Defendant did not file an Acknowledgment of Service (usually within 14 days of receiving the Claim Form and Particulars of Claim)
3. The Defendant did not file a Defence (usually within 28 days of receiving the Claim Form and Particulars of Claim if an Acknowledgment of Service has been filed)
4. The Defendant did not attend the hearing despite filing an Acknowledgment of Service or Defence

Using any one of the scenarios from 1 – 3 above, a Claimant can request a default judgment to be entered against the Defendant without the Claimant having to attend court and without further notice to the Defendant.

If a default judgment is entered against the Defendant, then the Claimant can take immediate steps to enforce it – the common way of enforcing is by using county court bailiffs or high court enforcement agents. In some cases, the Claimant can take steps to issue insolvency proceedings or even take charge over the Defendant’s property.

CAN A CCJ BE REMOVED?

Many times, people are not aware of a CCJ being registered against them and usually they find out when a background check has been run against them, such as, prospective employers for a new job or by the banks when offering a mortgage or a loan.

The court rules do permit a Defendant to make an application to ‘set aside the judgment’. This means that if a Defendant is able to demonstrate to a court that the judgment should be removed then it will be ‘set aside’. Applications should be made promptly from when the Defendant came to have knowledge of the CCJ. If the Claimant is able to demonstrate that the judgment had been validly entered against the Defendant, then the courts have discretion to set aside or even vary the judgment if:

• the Defendant has a real prospect of successfully defending the claim; or
• it appears to the court that there is some other good reason why the judgment should be set aside or varied, or the Defendant should be allowed to defend the claim.

There are times when even if the Defendant meets the above criteria, a judgment may not be set aside as the application was not made promptly.

If the Claimant is unable to demonstrate that the judgment was validly entered against the Defendant, then the courts must set aside the judgment.

HOW TO AVOID GETTING A CCJ REGISTERED AGAINST YOU

Below are some top tips to follow to ensure you avoid getting a default judgment registered against you

• If you receive a claim form and particulars of claim, then ensure you file the acknowledgment of service or defence within the 14 days from the date of service
• If filing an acknowledgment of service within 14 days, but no defence then you will have a further 14 days to file a defence (in total 28 days from the date of service).
• Ensure you follow all other court procedure
• Ensure you attend a hearing when a hearing date has been set by the courts
• If you receive notices for outstanding debt or even debt collector’s letters, do not ignore and obtain immediate legal advice
• If you have moved address then make sure you notify all relevant organisations and update your address, such as utility companies, mail order companies, DVLA, electoral roll etc.
• Redirect all your post from your old address to your new address using Royal Mail’s re-direction service for as long as possible

Remember to check your credit file regularly – this will help you act immediately if you notice a CCJ registered against you.

HOW WE CAN HELP

If you have received a Claim Form in the post, do not delay as there is a limited time to respond. We can assist you in responding to the Claim and help with the preparation of your Defence.

If you have missed the deadline to respond, then we can provide advice on applying to set aside the County Court Judgment and assist you with the application to the Court to allow you the opportunity to Defend the Claim.